Remember that averaged 8% annual is WITH dripping the div, not taking it.

For certain areas annual pest control may be needed for colder areas maybe you run the risk of freezing pipes.

To make taxes easier we set up a business checking account and had all the rent paid into that account and all the expenses paid out of that account.

Any amount above the annual gift tax exclusion ($17,000 for 2023) counts against your lifetime exemption.

but keep in mind CA has higher taxes and reg fees and I’m not doing more than 1-2 flips (short timeframe flips)  a year and many years do 0 flipsDo most flippers put flips into LLC Or in personal name (sole proprietor)  in CA (where you must pay $800 yearly plus accounting and other fees $300to $600+ yearly to maintain LLC) Pros for personal name-save on taxes accounting.

Get a new accountant.

You don't know, what you don't know.Bigger Pockets is a great place to find a tax accountant specializing in real estate taxation.

@Josh Dickson If your brother earns $700K annually, real estate investing can significantly reduce his taxable income.

Look forward to the discussion.https://www.biggerpockets.com/forums/51/topics/1222774-expla...https://www.biggerpockets.com/forums/51/topics/792277-how-to-test-your-cpas-technical-competencehttps://www.biggerpockets.com/forums/51/topics/795929-questions-to-ask-a-potential-accountant

Why ask: Some programs offer a month-to-month, no-commitment option so you can try out the program before paying an annual fee.